Veranda Learning Solutions was locked in an upper circuit of 5% at Rs 208.45 on signing a definitive agreement to acquire T.I.M.E. (Advanced Educational Activities) for a consideration of Rs 287 crore.
This 100% acquisition will be executed in a phased manner of which 80% of the outstanding capital along with management control will be paid in Phase 1, followed by the purchase of the remaining 20% at the end of two years (subject to the fulfillment of closing conditions). T.I.M.E. is a test-prep institute with a pan-India presence operating through 188 centres including franchisees spread across 98 cities in India and is headquartered in Hyderabad.
T.I.M.E. offers training programmes for national and state-level entrance exams like CAT, MAT, CMAT, CLAT, IIT Foundation, JEE mains & advanced, NEET, IPM, BBA, CUET, GATE, Bank PO, SSC, State-level admission exams and international exams like GMAT, GRE, IELTS and TOEFL including campus recruitment training. The company also has a chain of pre-schools under the T.I.M.E. Kids brand operating through 222 pre-schools in 56 cities.
In a separate press filing, the company has also approved the increase of authorised capital to Rs 100 crore from Rs 60 crore; increase of borrowing powers to Rs 1,000 crore from Rs 250 crore; issuance of non-convertible debentures/ bonds/ other instruments up to Rs 1,000 crore; and increase of investment limits to Rs 1,000 crore from Rs 750 crore.
Veranda Learning Solutions is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants, and graduates, professionals and corporate employees enrolled with its courses through multitude of career-defining competitive exams, professional courses, exam-oriented courses, short term upskilling and reskilling courses.
The company provides comprehensive long-term and short-term preparatory courses in a simple and lucid manner for students preparing for UPSC exams, State Public Service Commission, Staff Selection Commission, Banking, Insurance, Railways and Chartered Accountancy. The company also provides customised short term skilling courses, long term courses and other corporate courses to its Learners. The company also delivers these courses to employees of corporates through its B2B offerings.
On a consolidated basis, the company reported a net loss of Rs 18.27 crore on sales of Rs 15.46 crore in the six months ended 30 September 2021.
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The scrip was listed at Rs 157, representing a premium of 14.60% to the initial public offer (IPO) price on 11 April 2022. The IPO of Veranda Learning Solutions was subscribed 3.53 times. The issue opened for bidding on 29 March 2022 and it closed on 31 March 2022. The price band of the IPO was fixed at Rs 130-137 per share.
The stock hit an all-time high at Rs 208.45 during intraday trade.
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